Business | Banking
IPIC seeks Dh2.3b loan for Japanese acquisition
National Bank of Abu Dhabi (NBAD) said on Saturday it will arrange with Bank of Tokyo-Mitsubishi UFJ a Dh2.3 billion ($626 million) loan for Abu Dhabi's International Petroleum Investment Company (IPIC) for an acquisition in Japan.
- Staff Report
- Published: 23:14 July 5, 2008
Dubai: National Bank of Abu Dhabi (NBAD) said on Saturday it will arrange with Bank of Tokyo-Mitsubishi UFJ a Dh2.3 billion ($626 million) loan for Abu Dhabi's International Petroleum Investment Company (IPIC) for an acquisition in Japan.
IPIC, an investment arm of the Abu Dhabi government, is buying a 20 per cent stake in Japan's Cosmo Oil Company.
Cosmo Oil is a leading Japanese oil refinery and sales conglomerate listed on the Tokyo Stock Exchange.
IPIC signed a strategic partnership with it last year to acquire 176,000,000 shares, representing 20 per cent shareholding, in order to promote its energy business in the Asia Pacific region and the US West Coast as well as to pursue joint project opportunities.
The deal will enable Cosmo Oil to carry out its mid and long term growth strategy as it plans to upgrade the supply chain system, strengthen exploration and production, develop export sales, upgrade refineries and work closely with energy companies which have close relationships with IPIC.
"The acquisition forms part of IPIC's investment diversification plans," said Khadem Al Qubaisi, managing director of IPIC.
"The partnership with a leading global player such as Cosmo Oil will allow both companies to pursue investment opportunities in this rapidly expanding sector," he said.
Raouf Jundi, head of origination at Bank of Tokyo-Mitsubishi UFJ, said the loan is the second financing deal concluded with IPIC this year.
"NBAD is proud to play a significant role in financing the expansion plans of IPIC, especially this acquisition deal as it caters to the high demand in the energy sector and underpins the UAE company's presence worldwide," said Akram Mark Yassin, senior general manager of NBAD's corporate and investment banking division.
NBAD's outstanding loans for the energy sector increased to Dh8.3 billion at the end of 2007 compared with Dh5.5 billion in 2006.
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